equity capital

noun

Definition of equity capital

: capital (such as stock or surplus earnings) that is free of debt especially : capital received for an interest in the ownership of a business

Examples of equity capital in a Sentence

Recent Examples on the Web

The 18 biggest banks, which include American firms like JPMorgan Chase, Goldman Sachs, Citigroup and Bank of America, added more than $650 billion in common equity capital from the beginning of 2009 through the end of last year. Emily Flitter, New York Times, "Banks Want Efficiency. Critics Warn of Backsliding.," 20 Aug. 2019 Shareholders have a very particular role in allocating (and re-allocating) equity capital. Heather Landy, Quartz at Work, "Not everyone is on board with a major business lobby’s new definition of corporate purpose," 19 Aug. 2019 The rest of VW’s investment will buy a 20% stake in Northvolt itself, as part of an equity capital raise by the company. Stephen Wilmot, WSJ, "Volkswagen Follows Tesla Into Battery Business," 13 June 2019 The growing supply of private forms of equity capital is even more remarkable. The Economist, "The rise and rise of private capital," 4 July 2019 Stricter regulation of European banks since the financial crisis has required that banks hold more equity capital than in the past. Costas Paris, WSJ, "Germany’s Commercial Shipping Fleet Shrinks by a Third," 23 Sep. 2018 From 1870 to 2017, with rare exceptions, the net income of commercial banks as a percentage of their equity capital fluctuated within a narrow range of 5% to 10% a year, regardless of the size of their capital buffers. Alan Greenspan, WSJ, "How to Fix the Great American Growth Machine," 12 Oct. 2018 Tesla would be wise to take advantage of its surprisingly strong quarter to raise as much equity capital as possible given those obligations. Charley Grant, WSJ, "Tesla Hits the Bull’s-Eye," 24 Oct. 2018 In the run-up to the crisis, banks on average kept about 8 to 10% of their assets as equity capital. Alan Greenspan, WSJ, "How to Fix the Great American Growth Machine," 12 Oct. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'equity capital.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of equity capital

1942, in the meaning defined above

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More Definitions for equity capital

equity capital

Legal Definition of equity capital

see capital